Sparks Pty Ltd recently signed a lease whereby it has to pay R4 425 000 annually,...

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Sparks Pty Ltd recently signed a lease whereby it has to pay R4 425 000 annually, for 5 years, on the last day of the financial year for the use of a machine. It has the option to purchase the machine on completion of the lease contract by payment of an additional R1 150 000. Sparks intends to exercise this option. Cost of debt is 8% (before tax). Company tax is 27%. What is the after tax net present value of this transaction? (Round off the answer to the nearest Rand value) A. R14 596 515 B. R14 223 436 C. R14 532 282 D. R16 942 591 Sparks Pty Ltd recently signed a lease whereby it has to pay R4 425 000 annually, for 5 years, on the last day of the financial year for the use of a machine. It has the option to purchase the machine on completion of the lease contract by payment of an additional R1 150 000. Sparks intends to exercise this option. Cost of debt is 8% (before tax). Company tax is 27%. What is the after tax net present value of this transaction? (Round off the answer to the nearest Rand value) A. R14 596 515 B. R14 223 436 C. R14 532 282 D. R16 942 591